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Mehul Telecom Ltd IPO
Mehul Telecom Ltd
₹2,30,400 /2400 sharesMinimum investment
IPO listing details
Listed on
24 Apr '26
Issue price
₹98.00
Listing price
₹108.00
Listing gains
₹10.00 (10.20%)
Exchange
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IPO details
Minimum investment
₹2,30,400
Price range
₹96 - ₹98
Lot size
1,200
Issue size
27.73 Cr
Face value
10
IPO document
Subscription rate
Qualified Institutional Buyers32.50x
Non-Institutional Investor58.59x
Retail Individual Investor36.26x
Total41.24x
As of 21 Apr'26, 04:31 PM
Schedule
17 Apr 2026
IPO open date
21 Apr 2026
IPO close date
22 Apr 2026
Allotment date
22 Apr 2026
Funds unblock or debit
24 Apr 2026
Tentative listing date
About
Founded in
2023
MD/CEO
Mr. Mehul Vasantbhai Raymagiya
Parent organisation
Mehul Telecom Ltd
Mehul Telecom Financials
Revenue
Total Assets
Profit
All values are in ₹ Cr
Strengths & Risks
Strengths
Risks
The company is led by its promoters, who have over 17 years of experience in the retail sale of smartphones and accessories. They are actively involved in both strategic planning and day-to-day operations, supported by a management team with relevant industry experience.
Mehul Telecom claims to have an extensive retail network of 80 stores across Gujarat, comprising 6 COCO stores and 74 FOFO stores. This network is spread across multiple districts, enabling wider market coverage within the state.
The company claims to offer a diversified product portfolio with a large number of SKUs, including smartphones and accessories from multiple brands. Its product range also extends to consumer electronics and related peripherals.
The company operates a hybrid COCO and FOFO model, which allows it to expand its store network with relatively lower capital requirements. This structure enables the company to scale operations while sharing costs and responsibilities with franchise partners.
Mehul Telecom claims to position its stores in high-traffic locations to drive customer footfall. It also claims to provide in-store product demonstrations and assisted selling through trained staff.
The company claims to have established partnerships with financial institutions to offer financing options such as EMIs and no-cost EMIs. This is aimed at enabling customers to purchase higher-value products through structured payment options.
The company’s business involves frequent opening and closure of retail stores based on their performance and revenue potential. It closed 20 stores in FY23, 19 in FY24, and 12 in FY25, while continuing to add new outlets. Adverse outcomes from incorrect site selection, demand misjudgment, or underperformance of new stores can lead to increased costs, including lease termination expenses and asset write-downs, which may impact profitability.
The company’s entire revenue is generated from operations within Gujarat, with a significant concentration in the districts of Rajkot and Morbi. These two districts contributed Rs 87.66 crore (76.38%), Rs 81.94 crore (76.43%), and Rs 61.49 crore (76.73%) to total revenue for FY25, FY24, and FY23, respectively. Any adverse economic, regulatory, or market developments in this region, or risks of market saturation due to continued expansion within the same geography, could negatively impact the company’s business, financial condition, and growth prospects.
A substantial portion of the company’s revenue is dependent on a limited number of customers. The top 1 customer contributed Rs 13.06 crore (11.32%), Rs 2.78 crore (2.60%), Rs 8.07 crore (10.07%) to FY25, FY24, and FY23, respectively. Any loss of these key customers or reduction in business from them could adversely impact the company’s revenue and financial performance, especially if it is unable to replace such customers.
The company has reported negative cash flows from operating activities in recent periods, amounting to Rs 3.57 crore for the period ended December 31, 2025, and Rs 11.29 crore in FY25. These outflows were primarily driven by increases in inventory and trade receivables, indicating higher working capital requirements. Any continuation of such negative operating cash flows could impact the company’s liquidity, ability to fund operations, and overall financial condition.
The company and its promoters are involved in certain ongoing legal and tax-related proceedings. Any adverse outcome in these proceedings or the emergence of additional liabilities could negatively impact the company’s financial condition, cash flows, and overall business operations.
The company’s operations are dependent on third-party distributors for logistics and transportation of products to its stores. It does not have direct control over these supply chain processes, making it vulnerable to delays, disruptions, or inefficiencies caused by factors such as operational issues, regulatory changes, or external events. Any adverse impact on product availability or increased logistics costs could affect sales, operational efficiency, and the company’s financial performance.
The company operates in a market characterised by frequent price fluctuations due to rapid technological advancements and continuous product launches. Declining prices of older models can lead to inventory devaluation, affecting margins and profitability, while sudden price increases may impact customer demand. Any inability to effectively manage such price volatility could disrupt inventory planning, pricing strategies, and overall financial performance.
The mobile phone and accessories retail industry has relatively low barriers to entry, allowing new players to enter and scale operations quickly. The company’s franchise-based model can also be replicated by competitors, increasing the intensity of competition from both organised and unorganised players. Any increase in competition or aggressive pricing strategies by new entrants could impact the company’s market share, margins, and overall financial performance.
As of January 31, 2026, the company had outstanding borrowings, including secured loans of Rs 2.69 crore and unsecured loans of Rs 0.94 crore. These borrowings are subject to interest rate fluctuations and repayment obligations, with certain loans secured against properties, including those of the promoters. Any inability to service or repay these loans, or any adverse changes in lending terms or interest rates, could impact the company’s financial condition and cash flows.
Application details
For Mehul Telecom IPO, eligible investors can apply as Individual investor.
| Apply as | Price band | Apply range | Lot size |
|---|---|---|---|
| Individual investor | ₹96 - ₹98 | ₹2 - ₹5 Lakhs | 1200 |